Section (19) of the Construction Industry Development Board Act stipulates that “No person shall offer his services as a Consultant or Contractor unless he is registered under the Construction Industry Development Board Act”.
According to Section (2) of the Construction Industry Development Board Act, a Contractor means a person who, or a firm that, carries out construction works in the construction industry and includes a Foreign Contractor.
However, any person undertaking construction works of less than Rs 1,000,000 (VAT exclusive) is not required to be registered under the provisions of the Construction Industry Development Board Act.
There are six Classes of Works under which a Contractor can be registered, namely; ‘Building Construction Works’, ‘Civil Engineering Construction Works’, ‘Mechanical, Electrical and Plumbing Works(MEP Works)’, 'Mechanical Works', 'Electrical Works' and 'Specific Works'.
Contractors is also classified into 9 Grades A+ to H. Each Grade allows a Contractor to undertake construction works up to a contract value. A Contractor is not allowed to undertake construction works above his Grade Limit.